Michigan property tax uncapping: what happens when you buy
Why your tax bill can jump the year after you buy, and the 45-day form every buyer has to file.
In Michigan, a property's taxable value can rise each year by no more than inflation or 5%, whichever is less. When the property is sold or otherwise transferred, that cap ends: the next year, taxable value "uncaps" and resets to the state equalized value, which is about half of market value. The new owner must file a Property Transfer Affidavit with the local assessor within 45 days of the transfer. Some transfers, such as transfers between spouses, are exempt from uncapping.
